Icelandair Group hf.
Company Announcement

Traffic Data December 2011

Icelandair Group volume of business increased substantially in 2011

Icelandair’s volume of business increased substantially in 2011. Icelandair increased its capacity by 18% from the preceding year. Passengers were 1.75 million, up by 260 thousand, or 18%. The passenger load factor was the best in the company’s history, at 79.3%, up by 0.9 percentage points. Passengers on Air Iceland flights were 353 thousand, increasing in number by 3% between years. The company successfully focused on expanding its flights to Greenland, and in addition the number of passengers on domestic flights also increased between years. The number of sold hours in our capacity sector was almost the same in 2011 as in 2010. Air freight on scheduled flights increased by 7%. Available hotel room nights in Icelandair hotels were 253 in all, up by 7% between years.  The utilization of hotel rooms was 67.9%.

Icelandair flew 100 thousand passengers in December, 10% more than in December last year. The increase in capacity between years was 10%, and the passenger load factor was 74.2%, slightly down from last year. Passengers flying with Air Iceland were approximately 25 thousand in December up by 2% between years. The number of sold hours in our capacity sector fell by 12% between years. Air freight increased by 31%, as compared to December last year. The utilization of hotel rooms in Icelandair Hotels was 43.6%, increasing by 3.3 percentage points in comparison with the corresponding month last year.

This year the company will celebrate the 75^th anniversary of its foundation. The company’s history goes back to 1937 when an airline, Flugfélag Akureyrar, was founded at Akureyri on the north coast of Iceland. The company has always focused on marketing Iceland as a destination for foreign tourists and a favourable stopover option for transatlantic passengers. The company’s business activities have seen substantial growth since 2008, and the increase in scheduled flights between the years 2009 and 2012 is projected at over 50%. Icelandair Group CEO Björgólfur Jóhannsson: “Icelandair’s flight schedule in its anniversary year will be its largest ever. If everything goes according to plan, the number of passengers will increase by 250 thousand this year, to approximately two million.  There are also plans to increase the number of Air Iceland's flights to Greenland, in addition to increasing our market share in the charter market out of Iceland through Ferd.is. A new hotel will open in Reykjavík Harbour this spring. Through this continued growth we will keep on supporting the Icelandic tourist industry and the Icelandic economy while at the same time laying a foundation for the operation of our company.”

For further detailed information please contact:

Bogi Nils Bogason, CFO, Icelandair Group tel: + 354 665-8801
Íris Hulda Þórisdóttir, Director Investor Relations, Icelandair Group tel: + 354 840-7010